Project Finance

Question 1

What do the BCIS do

Answer 1

Building Cost Information service

Collate, colect, analyse, model and intrept cost information

Project Use - they set TPI and location factors

Question 2

What is a location factor?

Answer 2

Used to adjust average price to a particular location

Question 3

How often do BCIS review their building pricing

Answer 3

Quarterly

Question 4

What is TPI

Answer 4

Tender Price Index - use figure published by BCIS

Measure trend in contractor pricing levels in accepted tender

Question 5

What should a risk register contain?

Answer 5

Name of risk and associated probabilities
Planned response for managing each risk
Provision for monitoring and controlling risk so that’s re-assessed and re-evaluated
Provision for additional idenfication of risks as project progresses

Question 6

How does change control terminology differ between JCT and NEC?

Answer 6

JCT = variations
NEC = compensation events

Question 7

How is the change dealt with differently in JCT compared to NEC?

Answer 7

JCT- Time and cost separate
NEC - Time and cost together

Parameters that determine change differ
JCT - More subjective tests
NEC - More objective
e.g. weather JCT = ‘exceptionally adverse weather’ RE
NEC= less frequent than once in 10 years

Notification
JCT = ‘if/when it becomes reasonably apparent that works likely to be delayed
NEC = within 8 weeks of becoming aware that event has happened

Question 8

How can BIM help manage change?

Answer 8

BIM can be used to incorporate changes and value engineering by altering CAD info and reducing waste and improving efficiencies

Allows swift assessment of alternative design proposals before a change is implemented.

Allows designer to make the change in the model, highlight the change and visualise the finished product.